How Tesla Stock Has Fared in Q1 So Far

Tesla stock

In 2018, popular American electric carmaker Tesla (TSLA) showcased its ability to improve its car production exponentially. In the first half of 2018, reports suggesting bottlenecks in the company’s Model 3 production took a toll on investors’ (IWF) sentiments. However, the scenario changed in the second half as Tesla regained investors’ confidence by exceeding its Model 3 production rate guidance, which drove its stock up.

Last year, Tesla stock rose 6.9% compared to the 6.2% and 3.9% losses in the S&P 500 Index and the NASDAQ Composite Index, respectively. Other auto companies General Motors (GM) and Ford Motor Company (F) fell 18.4% and 38.1%, respectively, in 2018.

Tesla stock in the first quarter

While the broader markets seem to be on the path to a gradual recovery after a sharp sell-off in the fourth quarter, Tesla stock has turned negative. As of February 19, Tesla has fallen 8.2% quarter-to-date against the 10.9% gain in the S&P 500 benchmark.

In the first quarter so far, Tesla’s Chinese (MCHI) rival, NIO (NIO), has risen 14.0%.

In the third quarter of 2018, the company surprised its critics and many analysts by turning profitable. In the third quarter, Tesla’s adjusted EPS stood at $2.90 per share against Wall Street analysts’ consensus estimate of -$0.19. In the fourth quarter, the company’s adjusted EPS fell to $1.93 per share, worse than analysts’ consensus estimate of $2.20.

Rising competition in the electric vehicle market and Tesla’s struggle in the Chinese market (FXI) could be two of the key factors taking a toll on its stock in the first quarter. Read on to the next article, where we’ll talk more about Tesla’s struggle in the Chinese market.